HSI Soars 1.5 Percent As Global Economies Reopen

Hong Kong stocks closed on a high on Monday, extending last week's advance as countries begin to reopen their economies from lockdown, while death rates are also showing signs of slowing.

The Hang Seng Index rose 1.5 percent, to 24,602.

Across the border, the Shanghai Composite Index was flat, at 2,894 while the Shenzhen Composite Index dipped 0.2 percent, to 1,804.

Most Asian equity markets rallied as traders looked past a staggering jump in US job losses that was reported on Friday.

Tokyo and Sydney and Taipei all ended up more than 1 percent.

Jakarta, Bangkok and Mumbai also put on more than 1 percent, and there were also gains in Singapore and Wellington – though Seoul lost 0.5 percent.

Tapas Strickland, of National Australia Bank, remained upbeat as economies grind back to life after months of near standstill.

"A sharp pick-up in economic activity is being priced by markets, and should occur as long as there is no second wave of infections that necessitates the re-implementation of containment measures," he said.

"Markets are thus likely to be increasingly sensitive to the track of new Covid-19 cases in countries that have begun to ease restrictions. Progress on a vaccine/effective treatment would also be a game changer."

The improving sentiment lifted high-yielding, riskier currencies against the US dollar, with the South Korean won, South African rand and Australian dollar among the best performers. (AFP)